Lanco Infra puts power plants on sale; stock rallies

MUMBAI: Shares of Lanco Infratech extended last week’s gains following reports that the company is planning to sell power plants to reduce debt.

Lanco Infratech aiming to raise Rs 20,000 crore by selling power plants with capacity of 3,000 MW, stepping up efforts to liquidate assets just days after selling an electricity generating station in Karnataka for Rs 6,000 crore, reported ET.

For Lanco, shedding electricity assets will help it reduce debt, which was at around Rs 38,000 crore before it sealed a deal to sell its coalfield 1,200 MW Udupi Power Corporation to the Gujarat-based Adani Power.

For the Indian power sector, it will mark an intensification of consolidation after the election of a new government in May. Only last month Jaypee agreed to sell three hydel power plants to Reliance Power for Rs 12,000 crore.

At 09:40 a.m.; Lanco Infratech was at Rs 9.27, up 3.58 per cent, on the BSE. It touched a high of Rs 9.34 and a low of Rs 9.20 in trade today.